How to Give People Gift Cards They’ll Actually Use This Holiday Season

Tell me if this sounds familiar.

You open up a Christmas gift. What could it be? It’s small, and it’s light. It’s a gift card! It’s a gift card to a place you never, ever go. Nor do you want to. Then, you smile and say, “Thanks! I love it!” The gift card then goes in your junk drawer — you have one, admit it — never to be used.

You’re not alone. Every year, about $1 billion in gift cards go unused.

If I asked you whether you’d like to receive cash as a holiday or birthday gift, I’m pretty confident you’d say yes. You might even yell, “Make it rain!” I don’t know you that well.

The fact is that almost everybody wants cash as a gift. It’s easy, and you can use it in any increment you want and wherever you want.

But if we all just gave one another cash for gifts, it would just be one big cash exchange. We’d even pay enough attention so we’re giving equal amounts. Where’s the fun in that?

Gift cards are the next best thing. And while they may make a bundle of money for retailers, they really can be great gifts when done right.

How to Choose the Best Gift Cards

Why do we give gift cards instead of cash? They’re really easy, for one. There’s a whole selection next to almost every checkout line. Plus, they fit in a greeting card and can go in the mail. Also we somehow feel that it’s a little more personal than cash.

The best way to truly take advantage of its more personal feel is to pay attention to the person who’ll receive the gift card. What stores do they like? What foods do they like? Here are some easy tips:

• Do they have a guilty-pleasure store? You know, the type of place where there is nothing a person needs, but there’s still some really fun stuff? Maybe they can’t stop buying books or they love Godiva chocolates. These gift cards are great because they give them a chance to splurge without impacting their budget.

• Get them a gift card to one of their favorite restaurants. Or, if you know what kind of food they like, give them a gift card to a great place they’ve never been to. The key here is to give a generous enough gift card to cover at least most of the meal. No one wants to go to a restaurant to use a $5 gift card on a $40 meal.

• Look for gift cards that are good at a variety of locations. Many restaurant conglomerates offer one gift card that’s good at all of their restaurants. For instance, a gift card to Olive Garden is good at other Darden restaurants like LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s and Wildfish Seafood Grille. That’s a lot of options.

• When buying for children, look for gift cards that will give them experiences, rather than stuff. They’ll forget about the ice skates they bought, but if you bought them tickets to see their favorite team or band, they’ll cherish that memory.

• Find out if there is one particular big-ticket item that’s been on their wish list. Get them a gift card to help them bring that item home!

• If you don’t know exactly what stores they like, go for something easy like Target or Amazon. Nearly everyone can find something to buy from those retailers without leaving the house.

Do people like receiving gift cards? I asked my Facebook friends to chime in.

“I like them – but I am very picky about what I use them on. If, for example I get a Target card, I make sure to use it to buy something “fun” or “for me”…I don’t just put it towards staple items for my family.” — Heather Buege

“Depends on the gift card. Give me one for someplace I already go or enjoy going. Otherwise, you’ve gifted me a chore.” — Adam Porter

That says it all, doesn’t it? You want your gift to be a pleasure, not a chore.

What to Do if You Get Unwanted Gift Cards

So what do you do when you receive that gift card for a place you have no interest in going to?

• Check out the place online. Whether it’s a sushi bar or a hardware store, you may see something worth trying out.

• Regift it. OK, maybe it was a poor choice of a gift for you, but you happen to know someone who would love it. Tuck it away and regift for their birthday or another occasion.

• Turn it into cash. Websites like Raise, Cardpool and CardCash offer easy avenues to sell unwanted gift cards. The only catch is that you won’t get full face value for your card. But if you don’t want a $30 gift card to the Home Depot, wouldn’t you rather have $24 cash? How much you get typically depends on the popularity of the card.

Gift cards are too easy for shoppers and too lucrative for retailers to go away anytime soon. Make the most of giving and receiving gift cards by simply putting a little more thought into it. Just because something is convenient doesn’t make it a bad deal.

Disclosure: This post includes affiliate links. Adding these links helps us keep the lights on in The Penny Hoarder HQ, which makes it a lot easier to play shuffleboard after a long day of deal-seeking!

Tyler Omoth is a senior writer at The Penny Hoarder who loves soaking up the sun and finding creative ways to help others. He loves receiving gift cards, especially to restaurants and craft breweries. Catch him on Twitter at @Tyomoth.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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5 Holiday Gifts That Will Please Your Coworkers (Plus 6 That Totally Won’t)

Exchanging holiday gifts with family members is challenging enough. Buying gifts for the people you work with is an outright minefield.

You’d think people would stick with safe gifts like a coffee shop gift card or a book filled with pictures of puppies and kittens, but noooooooo.

According to a new survey from CareerBuilder, some workers like to get… how should I say it? Inventive with their gift choices.

Researchers asked people to share unusual gifts they’ve received from co-workers ,and some of the responses are real head scratchers.

6 Weird Gifts People Have Given at the Office

There were a lot of odd gifts mentioned in the survey, but these six really take the cake.

1. Saran Wrap. Maybe this was a not-so-subtle way of telling the recipient to at least cover their salmon before microwaving it for lunch?

2. Roasted grasshoppers. Nothing says “happy holidays” like a bag of crunchy insects.

3. Coupons from a grocery store. I can see why some people would be taken aback by this gift, but it would probably go over very well here at The Penny Hoarder HQ.

4. Party dip recipe. “It’s time to stop bringing your anchovy and pickle dip to our potlucks, Carol.”

5. A nightgown. The perfect gift to give if you’ve been longing for a nice chat with Human Resources.

6. Chicken earrings. Well, maybe… yeah, I’ve got nothin’.

What to Give Instead

Careerbuilder’s survey revealed that 43% of workers plan to spend $11 to $25 on each gift, while 27% will spend $6 to $10.

You can get a variety of thoughtful gifts within those price ranges — and not a single one involves dead bugs or nighties.

A cold brew infusion bottle or reusable coffee sleeve is perfect for the java aficionado in your office.

Consider a nice set of bookends or a fancy book mark for the bookworm you work with.

If you’re looking for something a little out of the ordinary but not too weird, pick up some novelty ice cube molds or a recipe rock.

What hipster wouldn’t love a pair of suspenders or an ironic t-shirt?

If you’re really at a loss for what to get, a subscription box is the gift that keeps on giving.  

Whatever gift you decide to give a co-worker this holiday season, remember to be discreet if you’re not giving something to everyone.

“If you are only giving gifts to a select few co-workers, don’t make your other colleagues feel bad by making a huge display out of presenting your presents. Send the gift directly to their home or set it on their desk before work,” recommends CareerBuilder.

Lisa McGreevy is a staff writer at The Penny Hoarder. She once received a package of hot dogs as a gift from a co-worker. It was so awkward.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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LendingTree Review

Rules and Limits to Open a SEP IRA for 2018

Are you a self-employed business owner that is looking for a cost effective to lower your taxes and help you save for retirement?

If that fits your profile then opening a SEP (Simplified Employee Pension) IRA might be a good retirement account to start for your business.

When I was researching what would be the best retirement plan to set up for myself when I first became self-employed, I narrowed it down between the SEP IRA and the Solo 401k.

Both allowed very favorable contribution limits, but the administrative costs and ease of setting up made the SEP IRA the easy answer.

If you are considering opening a SEP IRA for your business, here's what you need to know about the SEP IRA rules and contribution limits and how easy it is to open one.

SEP IRA's Have Tax Deferred Compounding

Just as a traditional IRA or 401k, your contributions are pre-tax and can significantly lower your taxable income.

You contribute pre-tax dollars to a SEP IRA, and that has the effect of lowering your tax bill. The money in the IRA grows tax-deferred, and your business doesn’t pay any taxes on the IRA earnings. The assets can be invested in many ways.

The traditional IRA rules apply. When you take the money out of a SEP IRA for retirement, you pay ordinary income taxes on it. (Should you withdraw SEP IRA assets before age 59½, you’ll likely be assessed a penalty, with some exceptions.)

SEP IRA Contributions are Discretionary.

One huge bonus for business owners is that you are not required to contribute to a SEP IRA each year.  In addition, there is not a set amount that you have to put in.  This flexibility is priceless for a business owner that has fluctuating net income year after year.

Also, you are not subject to the typical IRA deadline to contribute: April 15th.  If you file a tax extension, you can wait until then to make the contribution.

How Much Can you Contribute to a SEP IRA?

In 2018, you can contribute up to 25% of an eligible employee's compensation, up to a limit of $55,000.  Catch-up contributions are permitted for older employees, increasing the total contribution by $6,000 to $61,000. Based on the 25% rule the income threshold is $216,000.  Over an above that you will not be able to contribute any more.  That's when you might want to consider some other business retirement plans.

Now I just said that you can contribute 25% of your income, up to a total income of $275,000. But $275,000 at 25% would be $68,750, which isn’t right. And that’s where the maximum contribution gets a little bit more complicated.

Under the IRS’s convoluted calculations, in order to come up with the 25% contribution amount, you must first deduct the amount of the contribution from your income. Got that?

For those of you who follow the math, it works out to be – effectively – 20%. That’s how you get the maximum contribution of $55,000 on a $275,000 income.

By deducting $55,000 from $275,000, you get $220,000. And if you multiply 25% times $220,000, you arrive at the maximum contribution of $55,000.

I said that the calculation was convoluted, and this is what I mean. But for our purposes, you should assume that you can contribute 20% of your income to a SEP IRA. (If you want to do a deep dive into how this works, check out the IRS formula for calculating the contribution.)

Year	Maximum Annual Contribution	Maximum Considered Compensation
2018	$55,000	$275,000
2017	$54,000	$270,000
2016	$54,000	$270,000
2015	$53,000	$265,000
2014	$52,000	$260,000
2013	$51,000	$255,000
2012	$50,000	$250,000
2011	$49,000	$245,000
2010	$49,000	$245,000
2009	$49,000	$245,000

What Makes Employees Eligible for a SEP IRA?

If you have employees, then provided they pass a series of test, you will have to contribute the same percentage to them – just based on their salary- not yours. Generally, employees of a small business are eligible for a SEP IRA if they:

• Are older than 21
• Have worked for the business in at least three of the five years preceding the year in which the IRA contribution is made
• Have received $550 or more in compensation from the business in 2018 (this can rise with COLA adjustments in future years). However, the IRS states that an employer “may use less restrictive requirements to determine an eligible employee.”

However, the IRS states that an employer “may use less restrictive requirements to determine an eligible employee.” Employees covered by a union contract may be excluded from a SEP, as well as non-resident aliens who have not earned income from your business. All eligible employees must participate in the SEP, including part-time and seasonal workers and employees who die, quit, or get laid off or fired during the year.

Setting Up a SEP IRA and Maintaining Filing Requirements

In order to set up a SEP IRA you first need to choose the trustee for the plan. That can be a bank, a mutual fund family, a diversified investment brokerage, or a managed investment account.

That must be followed by three additional steps:

• Execute a written agreement to provide benefits to all eligible employees.
• Give employees certain information about the agreement.
• Set up an IRA account for each employee.

The plan trustee can help you with all of the set-up steps. The written agreement must include the name of the employer as well as the requirements to enable employee participation. It must also include an allocation formula, and be signed by you or another responsible official in your business.

The IRS even provides Form 5305-SEP, Simplified Employee Pension-Individual Retirement Accounts Contribution Agreement for this purpose, though the form does not need to be filed with the IRS. If you don’t want to use the 5305, the trustee that you select to administer the plan almost certainly has their own document format for you.

Once the trustee and the written agreement have been established, you must provide any employees with the following:

• Notice that you have adopted the SEP
• Any requirements for receiving the allocation
• The basis on which the employer contribution will be allocated

Important: You must also provide your employees with a copy of the completed Form 5305-SEP, or other written agreement used, as well as instructions for the form. It is not considered adopted until each employee is provided with the following information:

• A statement that IRAs other than the one the employer contributes to may provide different rates of return and contain different terms.
• A statement that the administrator of the SEP will provide a copy of any amendments within 30 days of the effective date along with a written explanation of its effects.
• The administrator will give written notification to the participant of any employer contributions made to a participant's IRA by January 31 of the following year.

You and each of your employees will get a statement from the plan trustee at the time you make your first contribution, and at least annually thereafter. The trustee must also provide a plain language explanation of any fees or commissions that it will charge on funds withdrawn from the plan. The plan can be set up as late as the due date of your business income tax return for the year in which you want to establish the plan, including filing extensions if necessary.

Three Reasons You Should You Open a SEP IRA

If you’re in a position to open up a SEP IRA then you definitely should. It’s one of the very best self employed retirement plans available.

Here are three reasons why this plan stands out above every other:

1. Fast Retirement Savings Build-up

At $55,000, or $60,000 if you are 50 or older, the SEP IRA offers one of the highest contribution limits possible. This is far higher than what you can get with a traditional or Roth IRA, or a SIMPLE IRA. Think about how quickly you could accumulate a seven-figure retirement portfolio making that kind of contribution each year?

By contributing $55,000 per year, with an investment return of 7% per year, your plan could reach $1 million in just 12 years. That means that if you start a SEP IRA at age 30, you will be a millionaire by the time you’re 42, just on your retirement plan alone.

Let’s take it a step further. If you continue the same contribution pattern until the age of 50, you would have nearly $2.3 million after just 20 years of making contributions. That looks like a recipe for early retirement, don’t you think?

2. Creating a MAJOR Income Tax Deduction

But moving past the rapid portfolio build-up, let’s consider another major advantage of the SEP IRA – tax-deductibility. $55,000 is a massive reduction in your taxable income. Assuming that you’re in the 25% tax bracket for federal income taxes, and 5% for state income tax, you would save $16,200 in income taxes each year.

3. The Ability to Expand a SEP IRA to Cover Employees

If you have employees in your business, or you plan to have them going forward, a SEP IRA can easily accommodate them. But there is one quirk in adding employees to a SEP IRA. Since it is an IRA, as in individual retirement account, you can sponsor the plan, but each employee within the plan will have to open up his or her own account. That’s a minor inconvenience, but one that will enable you to easily transition from sole practitioner status, to having employees with a retirement benefit. And in today’s job market, offering a generous retirement plan is a virtual requirement for attracting the best talent to your business.

And believe it or not there’s actually a secondary benefit for the separate accounts. Since each employee will have an account in his or her own name, they will each be responsible for investment choices made within their accounts. That will relieve you as the employer from having any responsibility to choose and manage investments in each individual plan. The combination of fast retirement build-up, major tax deductibility, and the ability to add employees to the plan, make the SEP IRA almost magical. If you’re looking to open up a retirement plan for your business, you owe it to yourself to thoroughly check this plan out.

Where Can I Open a SEP IRA?

Opening a SEP IRA is just as easy opening a regular investment account. You can open up one of these plans with the help of almost any financial advisor or financial institution.  Some of my favorite providers include:

Scottrade

I have been using Scottrade for years and they are my go to platform for online investment accounts.  In my opinion they are the best all around online brokerage with excellent tools and training for all levels of investors.  If you are going to jump in feet first and take on investing your SEP IRA on your own, then Scottrade is going to be your best choice.

The post Rules and Limits to Open a SEP IRA for 2018 appeared first on Good Financial Cents.

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Get Free Cookies From DoubleTree Through Dec. 24, Even if You’re Not Santa

Santa isn’t the only one who deserves a free cookie or two for working hard through the holiday season. You should get one, too. Now, thanks to DoubleTree by Hilton, you can.

Just stop by any DoubleTree hotel in the U.S. and ask for a cookie, and the front desk attendant will hand one over.

The cookies are free year-round for guests staying at the hotel, but through Dec. 24, as part of the hotel chain’s 12 Days of Cookies campaign — the cookie giveaway started Dec. 13 — you can grab a warm chocolate chip cookie even if you didn’t pay for a room.

So next time you drive past a DoubleTree, pop in and treat yourself. You deserve it.

Desiree Stennett is a staff writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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What Is a Good Credit Score?

A lot has changed with credit scores in the last few years. Both the credit repositories, and the companies who use them, are redefining credit scores as a result of the financial meltdown. The credit scores that were valid three or four years ago may no longer be. That raises the question: What is a good credit score?

Part of why it can be difficult to get a straight answer to this question is quite simply that there are several different credit scoring models floating around out there. Some are actually used by real lenders, while others are put out there mainly for public consumption. And then there may be different credit scores that apply to different industries, and even various companies within those sectors.

Confused? If you are, then you’re starting to get a grasp of what’s going on. Call it Mass Credit Score Confusion.

All credit scores are not created equal: FICO vs. FAKO

FICO scores, a product of the Fair Isaacs Corporation, are the lending industry standard in credit scores.

For this reason we can say that your FICO score is your real credit score – the only one that will count for lending purposes.

FICO scoring is used by each of the three credit repositories – Experian, Equifax, and TransUnion – though each has an internal “brand name” for its own version. There are no significant differences between each of the three versions, if there are any differences in all.

Though there can be substantial differences in credit scores from each of the three repositories, this usually owes either to timing differences in the reporting of information by individual creditors, or the fact that creditors may not report to all three repositories.

Are you still confused? It only gets worse from here!

FAKO refers to any credit scores that are not FICO. Vantage Scores are among the most popular FAKO scores. They represent a partnership among the three credit bureaus, and include:

1. TransRisk from TransUnion (scored on a 300 to 850 point scale),
2. Score Card from Equifax (280 to 850), and
3. ScorexPLUS from Equifax (360 to 840)

While the scores generally track actual FICO scores, they won’t be an exact match. However, having access to these scores will at least enable you to have a general idea what is going on with your FICO scores. Significant increases or declines in your Vantage Scores can tip you off that you are either heading in the right direction, or that you have some credit issues you need to take care of.

Other FAKO scores.

The explosion in “free credit score” providers has increased the number of options based primarily on FAKO variants. Though subscribing to these services will enable you to see the ups and downs in your scores, it is important to understand that these are not the credit scores used by lenders. Not only are the scores not real, but they’re not necessarily free either. Most of them will enable you to get your score on a regular basis if you subscribe to their service.

Examples of these services include Quizzle.com, CreditKarma.com, and MyFico.com. Each uses a different scoring source, which may even be legitimate. For example, CreditKarma’s credit score comes from TransUnion. Though that may be only one of the three credit repositories lenders use, the score you will get will be accurate – at least as far as TransUnion goes.

MyFico takes it a step further, and uses two credit scores: TransUnion and Equifax. Now whether any of these credit scores that are drawn from legitimate credit repositories are the ones that are actually used by lenders is subject to debate. They may give you an actual FICO score, but it’s also likely that you’re getting a Vantage Score.

Once again, if you’re concerned with the relative level of your credit score, any of these FAKO sources can help you stay on top of that. Just remember that whatever credit score you get from these sources is unlikely to be your actual credit score for borrowing purposes.

The danger of relying on FAKO credit scores

There is a general consensus that the scores you get from FAKO sources are calculated on the high side. They tend to be higher than what your actual FICO scores are – sometimes as much as 100 points higher. This can create serious problems if you are about to apply for a loan based on your knowledge of a FAKO credit score.

Let’s say the lender requires a minimum score of 680 in order to make a loan. Armed with your FAKO score of 720, you may go into the application confidently, reasoning that you have excellent credit. But when the lender pulls your actual FICO score, it comes back at 655.

Not only do you not have excellent credit, but you will not get the loan you are applying for either. This is the downside of relying on free credit scores and their FAKO scoring models.

Is it possible that FAKO credit scores might be intentionally inflated in an attempt to draw more consumers to free credit score schemes? As the saying goes, you’ll win more bees with honey than with vinegar. Maybe the extra 30 to 100 points that FAKO scores typically have is the “honey” of free credit score offers. I’m just sayin’…

Residential Mortgage Credit Reports – The Big Kahuna of the Lending Universe

The Residential Mortgage Credit Report, or RMCR, is probably the standard in both credit reports and credit scoring. If you have never heard of this type of credit report before, that’s probably because they’re used primarily by the mortgage lending industry and are not well-known by the general public.

The report contains the most accurate information available in regard to both credit and credit scores. It is what is commonly referred to as a “triple-merged credit report”, or simply as a tri-merged. “Triple” refers to the fact that credit information and credit scores contained in the report are drawn from all three credit repositories – Experian, Equifax and TransUnion.

Each credit repository supplies an actual current FICO score in the report, as well as any and all credit data available in their system .The “merged” part in the name of the report refers to the fact that duplicate information between the three repositories is removed. This provides a “clean”, easy-to-read report.

The mortgage lender will look at all three scores from each of the repositories, and take the middle of the three scores as your credit score for lending purposes. If for example, your scores are 752, 724 and 667, the lender will use 724 as your score. And for what it’s worth, a variation to that degree is pretty normal!

Still more confusion: Different FICO models for different industries

In theory, the FICO model is a standard one that can be used under different circumstances. However, there are slight variations in the models used for each industry that access the scores.

In general, this is the rough formula that is used in calculating FICO scores:

1. 35% Payment history on loans and credit cards.
2. 30% How much of your available credit you are using.
3. 15% Length of your credit history.
4. 10% Recent credit inquires.
5. 10% The types of debt/credit that you have.

Those numbers look nice and pretty, and add up nicely to 100. But according to the credit repository websites, the numbers above are actually more of an average of the range for each category. But let’s go with these numbers because they’re easy to read, and widely in circulation.

Beyond the breakdown above, various industries may give different weight to credit events within each category. For example, the mortgage credit scoring model (known specifically as the FICO 8 Mortgage Score) will give heavier negative weight to a late mortgage payment. The scoring model for auto lenders will give greater negative weight to late auto payments.

This makes perfect sense, since each industry has a very different specific focus. Yes, a mortgage lender may be concerned that a borrower has made late car payments in the past, but they’re a lot more concerned if the same borrower has a history of late mortgage payments. After all, mortgage lending is what a mortgage lender does.

The bottom line is that your FICO score for a Residential Mortgage Credit Report may not even the same as the FICO score that came up when you applied for an auto loan or credit card.

Credit scores are a moving target

This point alone makes a compelling reason for staying on top of your credit scores on a regular basis. Your credit score is not a fixed number – it actually changes continuously. It can change day-by-day, or it could even sit in one place for a month or more. It can rise 20 points one week, but fall 80 points the following week.

How does that happen?

Your credit score is a composite calculation of your credit payment history, the amount of debt you have outstanding, the number of credit lines you owe money on, public records information, the type of loans that you have, and even new credit lines you applied for. (Contrary to popular belief, it does not factor in information such as occupation, income, home value or investment assets owned.)

Each of these items changes on an ongoing basis. For example, if you go to Best Buy and purchase a widescreen TV for $1,000 on your Visa card, the amount of money that you owe will increase. That may drop your credit score a few points.

If you had a late payment on the same Visa card 25 months ago, and have had a clean payment history since, your scores may go up a few points because that delinquency is now over 24 months old.

These are just two of the examples of factors that will cause your credit scores to change so quickly, and for no reasons you can ever figure out.

If you have a good credit score today, that does not mean that your score is chiseled in stone. A good credit score today, simply means that you have good credit score today. Tomorrow, next week, next month or next year could bring big changes!

The next time someone asks you “what’s your credit score?”, instead of blurting out the last score you saw, just say, I don’t know – I’ll have to get back with you.”

That will be the most honest answer you can give.

So back to the original question: What is a good credit score?

In reality, there are no hard and fast standards as to what constitutes good credit or bad. It’s mostly subjective, and it really depends mostly on the source that is using the scores.

According to Experian, most credit scores fall somewhere between 600 and 750. 700 is the rough threshold separating good credit from average or fair credit. Not very scientific sounding, is it?

The mortgage industry gets more specific. According to FNMA, most mortgage loan programs are available with a credit score of 680 or higher, on loans with less than a 25% down payment (or equity, in the case of refinances). Some higher risk programs, such as cash out refinances, or the purchase of 2-4 family homes require scores as high as 700 or even 720. But at the opposite end of the spectrum, you may be able to get a mortgage with a score as low as 620 for lower risk products, such as the purchase of a single family house with a down payment of 25% or more.

Based on mortgage industry standards, 680 is what we might call a “highly workable credit score”. Maybe not “good” – but certainly good enough! A higher score is advisable since different industries have different thresholds.

And it goes without saying that the higher your credit score is, the more likely you are to get the best rate and terms on any loan you are applying for. And higher is always better if you are applying for a job or just about any type of insurance policy. As far as a credit scores that fall under the category of “excellent”, 750 or higher seems to be about standard.

Do you want to know where your score falls in relation to other people’s scores? According to Equifax, the distribution of credit scores across the population looks something like this:

• 20% are above 780
• 20% are in the range of 745 – 780
• 20% are in the range of 690 – 745
• 20% are in the range of 620 – 690
• 20% are below 619

Staying on top of your credit score

If you’re sensing tremendous confusion on the subject of credit scores, the take away should be this: monitor your credit scores early and often! Though you won’t ever know your credit score for lending purposes, you will have a general idea what the ballpark of your score is, and the need to take action if it’s necessary. That could make the difference between getting a loan, a job or an insurance policy – or not.

What are the options to get your credit report – and to get it for free?

Free Resource #1: AnnualCreditReport.com

By law, the three credit repositories – Experian, Equifax and TransUnion – must provide you with a free copy of your credit report once every 365 days. You can do this through AnnualCreditReport.com.

You will not get your credit score through this site, but you will get a copy of your credit report. You should review the report for errors, and take steps to correct them. Doing so will improve your credit score when it comes time to apply for a loan. And it’s always best to fix errors way before you start talking to a lender.

An important point on pulling your credit reports through this site: you are entitled to receive a copy of your report from each of the three repositories each year. You should not order all three at the same time. Instead, order one at a time, maybe four months apart. That will enable you to review your credit report three times per year, rather than just once.

Free Resource #2: Companies that monitor FAKO scores

There are dozens of sources for these, but the two I recommend most are Credit Karma and Credit Sesame. No, these won’t tell you what your actual credit score is, but they will enable you to monitor your credit score level, and that will at least keep you informed if there’s a problem.

• Credit Karma. Free to join and offers free credit reports (they make their money on other services they offer), Credit Karma provides three different credit scores: the TransUnion TransRisk score, your Vantage Score, and an auto insurer score. The site also allows you to update your scores on a daily basis, and it seems to have more options in general.
• Credit Sesame. This site is also free to join and offers free credit reports. Credit Sesame provides access to Experian’s ScorexPLUS credit score, and allows you to obtain updates on a monthly basis.

My recommendation is that you use both services are free, and the combination will allow you to access scores from both TransUnion and Experian.

If you’re even more confused about credit scores than you were before you read this article, then you got the point completely. Credit scores are too complicated to mastered – but that’s exactly why we need to monitor them.

The post What Is a Good Credit Score? appeared first on Good Financial Cents.

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This App Helps You Find the Credit Card Benefits You Didn’t Know You Had

This Company’s Hiring Real-Life Mermaids to Hang Out Under the Sea

How to Create an Actionable Drip Campaign

I know how much time and effort you put into building your email subscriber list.

But growing that list is only half the battle.

Now that you have a way to contact these subscribers, you need to make sure your messages trigger a response.

I’ve seen many companies having success with adding customers to their email lists but struggling with the content portion of their email marketing strategy.

Simply put, they don’t know what to write in their emails or when to send them out.

Each message you send needs to be carefully calculated.

Timing is everything.

That’s why I love to use drip campaigns to elicit an action from the recipient.

If you’ve never heard of a drip campaign or haven’t used one, I’ll cover the basics before we move forward.

Drip campaigns are sometimes called:

• automated email campaigns
• auto-responders
• life cycle emails
• automated email campaigns

Automation is the key term associated with this technique.

Drip campaigns are a series of emails that get sent to subscribers in a predetermined order.

Although it may sound simple, this email strategy is highly beneficial to your marketing strategy.

Drip campaigns are commonly used to communicate to new subscribers or someone who made a purchase but didn’t join your email list yet, but you can use them at any time.

I’ll give you some tips about the best uses of drip campaigns and show you how to create one.

Here’s what you need to know.

Focus on personalization

Although drip campaigns are automated, you don’t want your message to come across that way.

Subscribers want to hear from you, not some computer.

Make sure your emails don’t sound like cut-and-paste or cookie-cutter templates (even though they might be).

I’m sure you’ve received emails that start with

“Dear valued customer,”

That’s boring.

You won’t get any actionable response from someone if they don’t even finish reading the message because they got bored.

After the message gets sent, the subscriber needs to:

1. receive it
2. open the email
3. understand the content
4. identify the call to action
5. complete that specific action

Personalization can help you accomplish these things.

Marketing experts agree this is an effective tactic:

Automating your email responses doesn’t mean you should ignore best marketing practices.

A recent study from OneSpot and the Relevancy Group showed personalized emails positively impacted:

• open rates
• click rates
• conversion rates
• average order amount

Pairing that strategy with your drip campaign is a no brainer.

Use the recipient’s first name within the body of the email.

Try personalizing the subject line as well.

You don’t have to always use their name to accomplish this.

Here’s what I mean.

Which one of these two subject lines sounds more appealing?

“A special offer for a loyal customer.”

Or…

“I’ve got a special offer for you.”

The second choice is the clear winner.

It’s personalized from the sender (I) as well as the recipient (you).

You should also end each message with a personalized signature.

Here’s a great example from Ian Blair at BuildFire:

Ending a message this way will remind the reader it’s coming from an actual person—not an automated computer system.

It’s more effective than saying

“Sincerely, The Management Team.”

The email sender field should also come from your personal email address as opposed to customersupport@companyxyz.com.

Here’s what the sender field looks like in that last example:

Implement these personalized touches in each email to get a more actionable response from your drip campaign.

Use a drip strategy to grow your email list

You can actually use a series of automated messages to add subscribers to your email list.

I know what you’re thinking.

How is it possible to send someone my drip campaign if they aren’t already on my email list?

Well, it’s possible.

This method works particularly well for ecommerce sites.

Customers can purchase something from your website without signing up for emails.

It’s the perfect opportunity to send them triggered emails so they complete an action.

In this case, the action would be joining your subscriber list.

Here’s how you do it.

Take a look at this part of the checkout process from Lululemon:

Entering an email address is required for customers to complete the purchase.

Why?

The company wants to send you updates about your order.

If the customer unchecks the box that signs them up for promotional emails, these order updates can double as a drip campaign.

Here’s the sequence of messages:

1. order confirmed
2. package shipped
3. items delivered
4. follow-up

You have four opportunities to get this person to opt in to receive future emails.

Just make sure you execute this drip in a timely fashion.

The order confirmation message should get sent instantaneously.

Have a clear call to action in this message that entices the recipient to join your subscriber list.

Discounts work well.

For example, you could offer them 25% off their next purchase if they join your list.

Even if they don’t do this yet, don’t worry.

You still have three other opportunities to get them to subscribe.

Stick to the script.

Update them on their order status, and remind them about the benefits of your subscriber list.

Remember, you have their name, so don’t be afraid to use it.

As we discussed earlier, adding a personalized touch can help with your conversion rates.

If you’re using a service like MailChimp to contact subscribers, you can create a survey directly on their platform.

Take advantage of that resource with the fourth message of this drip series.

Ask for the customer’s feedback.

Were they satisfied with the order process?

Was it delivered in a timely fashion?

Are they happy with the performance of the product?

Most importantly, don’t forget to pitch your subscriber list.

This is your final chance to get the customer to opt in.

It’s also a great way to enhance the customer experience, and it shows you’re constantly trying to make improvements.

Send a welcome message to new subscribers

Drips are also effective once you’ve added subscribers to your list.

In fact, the first messages new subscribers get should be in a drip sequence.

Once someone joins your list, you should automatically send them a welcome message.

Set up your double opt-in landing pages the same way.

You can take your welcome message one step further and increase the personalization of future email content.

Here’s what I mean.

Let your subscribers choose what kinds of emails they want to receive.

Do they want promotional messages like flash sales and other discounts?

What about notifications whenever you launch a new product?

Or maybe they just want to receive your newsletter?

Ideally, they want to receive all of the above, but let them decide with your welcome message.

The Drip email marketing service allows you to set this up with a triggered link.

But I’m sure whatever software you’re currently using has a similar feature.

Here’s an example of what the message would look like:

What the customer clicks on will determine the rest of the drip sequence.

This keeps all their messages relevant, improving your unsubscribe rate.

They won’t think they’re receiving any irrelevant messages since they are getting exactly what they asked for.

It’s perfect.

The CTA should still be similar in each drip sequence.

Having consistency will help drive the actionable response you’re trying to get from these messages.

Building a drip campaign

Now that you know the basics of drip campaigns, it’s time to create one.

You can do this with your current email marketing software.

Although the wording may slightly vary depending on your service provider, these are the basic steps you’ll need to take.

I’ll use HubSpot’s platform in this example since their navigation is user friendly and easy to understand.

Step #1: Go to the “Productivity” tab, and select “Campaigns”:

The “Marketing Dashboard” is basically your homepage from the user side of the platform.

Step #2: Create a new campaign:

Here, you’ll see any previous marketing campaigns or pending messages.

Click on “Create a new campaign” in the top right corner of the screen.

Step #3: Select a template:

For our purposes, we’ll select the template builder and email options.

Once your template is customized, you can start working on the content of the message.

Remember the points we talked about earlier.

Personalize.

Keep your message short and to the point.

The CTA should be the focal point of this message if you’re trying to elicit a specific user action, whatever that may be.

The tone of your message should reflect that goal.

Step #4: Schedule for automation:

Now you can step up the frequency of your message.

For example, you’ll want to make sure your welcome message gets sent to a new subscriber right away as opposed to a day or two later.

Setting up a drip campaign isn’t difficult.

The process is very similar to how you’re currently using your email marketing software.

You’re just not going to send out each campaign individually.

Set it up, and let the triggered response drip the sequence depending on the subscriber’s preference.

Measure your success

Automated messages don’t mean you can just set your campaign and forget about it.

You still need to track your results to see whether each drip campaign was successful or not.

Look at the basics like:

• open rates
• click rates
• bounce rates
• conversion rates
• unsubscribe rates

Conversions will be the true measure of the success of each campaign.

While the other factors will help contribute to that number, the conversion has to be your ultimate goal.

Take a look at the possible paths an email can take after you send it out:

Measuring your results can help you determine what factors are preventing the recipient from converting.

For example, your open rates may be high, but click rates could be low.

Make the necessary adjustments.

Try to reposition your CTA or change the wording to entice an action.

This is a great opportunity for you to start A/B testing your email messages.

Conclusion

Drip campaigns are an effective way to improve your existing email marketing strategy.

It’s easy for you to set up as well.

Even though your subscribers are getting an automated response, it’s important the message doesn’t come across as automated.

Use the personalization tips outlined above, like using the subscriber’s first name and sending the message from your personal email address.

This will help you get more conversions.

While welcome messages are one of my favorite ways to start a drip campaign, you can also use drip emails for people who haven’t subscribed to your email list yet.

Just send them updates when they buy something from your ecommerce store.

Once your campaigns go live, keep track of the results to measure your success.

Make any changes to get optimal results from each campaign.

What kind of personalized CTA will you use in your next drip campaign?

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Pick the winner of the Moneywise Customer Service Awards 2018

Now’s the time to have your say about the financial firms that have gone that extra mile for you and to name and shame those that have badly let you down.

Whatever the financial product is – current account, credit card, travel insurance or mortgage – poor customer service can stick with us for a long time, damaging our trust in the brand.

• Vote in the Moneywise Customer Service Awards 2018

In an age when we can switch products and providers more easily than ever before, this can be disastrous for financial firms.

And yet poor service still exists: the home insurance provider that takes an eternity to settle a claim, the Cash Isa provider that fails to invest your contribution in the right tax year, and the bank staff who are unhelpful or rude.

Often, it’s the firms selling cheaper products that fail to provide customers with a decent service. It’s all too easy to get our heads turned by cheap quotes and competitive rates, but finding a good deal on financial products isn’t just about the cost. From choosing a mortgage or savings account to switching current accounts and claiming on pet insurance, first-class customer service is equally important.

With that in mind, we want to hear your views about the customer service you’ve been getting over the past year from your bank and other financial providers – in branch, over the telephone and via email. Which provider has gone the extra mile to make your life easier? Which products and services couldn’t you be without? And which firm has kept you waiting on the phone?

Last year, 50,000 of you voted in our online survey that forms the basis of the Moneywise Customer Service Awards. We would like to reach even more of you this year, so please spread the word among friends and family. We want to know which companies you think offer service with a smile and which have let you down the most.

Now in its 10th year, the survey asks you to vote for the financial providers you rate most highly, based on the customer service experience you’ve received. The aim of the survey is simple – we want to identify Britain’s most trusted companies, so that Moneywise readers can get the very best out of the financial products and services they rely on.

• Have your say on the financial services companies you trust – for the chance to win £1,000

2017’s big winner

Last year, Metro Bank retained its title as Britain’s Most Trusted Financial Provider. It beat fierce competition to take the top prize for the second successive year.

The bank continued to garner lavish praise from its customers, and our research found the bank is attracting a new, younger audience of consumers.

Other big winners in the 2017 awards included Santander, which was crowned Most Trusted Mainstream Bank, and LV= which won the award for Most Trusted Insurer. Zopa was named the Most Trusted P2P Platform.

But we don’t just celebrate success at Moneywise, we name and shame companies when they get it wrong. Last year’s wooden spoon award went to Royal Bank of Scotland, taking the booby prize of least trusted financial services provider for the fourth year in a row. Many readers criticised the bank’s.

• See the winners of the Moneywise Customer Service Awards 2017

YOUR CHANCE TO WIN £1,000 AND OTHER PRIZES

Now the 2018 survey is open, we want you to take part – whether you’ve shared your views before or you’re getting involved for the first time. This year, we’re offering a £1,000 cash prize to one lucky reader who completes the survey. And five more readers will each win £100 in Amazon, John Lewis or Marks & Spencer vouchers.

To be in with a chance of getting your hands on the prizes, just visit the Moneywise Customer Service Awards 2018 homepage to cast your vote. The survey is now live, so why not get started and encourage your friends to do the same?

Please spread the word. You can use Twitter to tell your followers about our online survey by tweeting the link using the hashtag #companiesitrust. Also, why not post the link on your Facebook or Google+ page, using the same hashtag? 

Section

• Saving & banking
• Current accounts

Free Tag

• Moneywise Customer Service Awards 2018

Related stories

• Moneywise Customer Service Awards 2017: Who should you trust with your money?
• Have your say on the financial services companies you trust – for the chance to win £1,000
• Moneywise Customer Service Awards 2016: The winners: Banking

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Questions About Pensions, Edible Gifts, Commuting, No Shopping, and More!

What’s inside? Here are the questions answered in today’s reader mailbag, boiled down to summaries of five or fewer words. Click on the number to jump straight down to the question.
1. Short term money options
2. Pension and retirement
3. Pension calculators
4. Going out to the movies
5. Edible homemade gifts
6. Unused gift without receipt
7. Cheaper rent or shorter commute?
8. Investing in best mutual funds?
9. Wanting to downsize possessions
10. My Year of No Shopping
11. Very old savings bonds
12. Goal oriented planner question

We’ve received a lot of feedback about the site redesign in the last few days and I wanted to share a few things regarding the redesign, particularly for long-time readers.

First of all, we’re still looking at the best way to design The Simple Dollar for the future. I personally am not a good web designer, in the sense of making a visually attractive site that also helps the site earn the revenue it needs to keep the doors open. Anyone who is a long-time reader knows that the earliest designs of the site, which I kludged myself, pretty much constantly went too far in one direction or the other. It is really hard to find a balance between the different elements – an appealing visual look, readability, and revenue generation.

Most of the design decisions were meant to reflect how most people come to the site for the first time. First-time visitors are quite often brought to the site via Google searches for things involving credit cards, so we put that information right at the top. However, finding the usual blog postings is easy – just scroll down a bit or click on the button that says “Explore our blog” right at the top. If you’d like to bookmark the blog postings directly, here you go.

Also, it’s now really easy to read just my (Trent’s) articles, a long-requested feature that did exist in the past and was hard to get to. Here’s a link straight to just my articles. I will say that there are other people who contribute to the site sometimes that I think do a fantastic job (Holly Johnson immediately comes to mind as I’m typing this, mostly because I’ve known her and her great work for years, and others do a great job too), so I hope you’ll keep an eye on the full blog going forward, which mixes my articles with Holly’s and others.

As a final note, we are still tinkering with the design, so please keep sending feedback to inquiries@thesimpledollar.com.

Q1: Short term money options

We are going to pay all our debt (but the house) within three months, it is only $7K. Beside maxing out our IRAs, 401K contributions and building our emergency fund, what can we do to make our money grow in the short term? Is a money market account a good move? We thought about buying a rental property but have not make any decision yet. We are in our mid 40’s, have excellent credit score (close to 800) and as a couple we make close to 90-100K.
– Yolanda

The best place for money in the short term is a money market account. It doesn’t earn money at a fast rate, but it does keep that money safe from market hiccups.

Almost every other investment has some degree of risk associated with it, whether that risk is relatively low (like with A-rated bonds) or relatively high (stocks, real estate, Bitcoin). Money market funds and savings accounts are about as safe as you can get, which is a good option if you’re intending to spend the money in the short term.

To be clear, I define “short term” as being less than five years, or perhaps even a little less than that. “Long term,” for me, is defined as ten years or more. I generally keep very little risk in investments that I intend to use in the short term and have quite a bit of risk in investments that I intend to use in the long term. I usually mix it up in between the two.

Q2: Pension and retirement

How/what strategy is the best way for someone with a defined pension benefit to calculate their retirement needs? You always read, person retiring assume they live to 90. Number of years to live on = 90 minus retirement age. Figure out a 4% withdrawal rate from your nest egg assuming a very conservative (this is just me, 5% growth of account). Can the amount that you budget/estimate that it will take to live off of annually be at or less than 4%? So, if someone has a defined pension payout for the rest of their life of $50,000 (I wish, but just keeping the math super simple), is it easiest and most accurate to just subtract the $50,000 from the annual amount you assume you will need in retirement life, or would you figure out a way to estimate the present worth value of what $50,000 a year looks like now in today’s dollars over X years and add it to your current nest egg?
– Chris

That’s generally considered the best way to calculate retirement with a pension. You just subtract the annual amount of the pension from the annual amount you want to live on and do the math from there.

Most of the time, people don’t include inflation in retirement calculations. Instead, they usually choose an annual number that’s substantially higher than what they’ll actually need in retirement and use that as a baseline. I usually just use my current salary converted to my expected retirement age, because when I retire, my spending is going to drop (yes, even as someone who works from home, but it would be even more so if I worked outside the home). Some sources encourage you to use 90% of your current salary, or 80%. The truth with all of them is that your spending is likely to drop by more than you think once you remove work-related incidental costs, commuting, work clothing, eating out, and so on from your budget.

So, let’s say I make $50,000 a year right now. I use an inflation calculator and that says I’ll be making $70,000 a year when I retire. If I’m assuming a 4% withdrawal rate (which should be safe for 30 years or so), I should multiply that number by 25, which is $1.75 million. But wait! If I have a pension that I expect to be $40,000 a year, that annual number drops to $30,000. Furthermore, if I expect to bring in $15,000 a year in Social Security, that annual number drops to only $15,000 a year, which means my target number is actually only $375,000. That’s a lot easier to reach, especially with a lot of years to go.

Chris had a follow-up question.

Q3: Pension calculators

It is difficult for someone with a future pension to use any online retirement calculators because hardly any of them allow future annual pension amounts to be factored in. Do you know a site that does allow this/takes this into account for retirement planning?
– Chris

Many retirement calculators don’t include pensions at all because they’re so rare, but I find that strange because they really are easy to include.

For a simple retirement calculator with a pension included, I’d check out the US News and World Report retirement calculator. It takes just a handful of very simple inputs and produces a robust report.

The AARP calculator is much more robust, but involves a great deal more data entry. It covers pensions quite well, too.

Q4: Going out to the movies

My circle of friends loves going out to the movies together but doing so always turns into a really expensive night. Movie tickets + snacks at the movies + going out to eat afterwards + usually going to the bookstore or something after that = lots of expense. I actually turned down going to Last Jedi with them because I couldn’t afford it. But I don’t want to lose friendships. Don’t know what to do. I don’t want to spend $100 just to hang out with my friends.
– Dana

First of all, $100 is most certainly an exaggeration unless you’re going to a very nice restaurant, buying a lot of drinks and snacks, and probably also leaving the bookstore with an armload of books.

Here’s a suggestion: eat a meal at home, then go to the movie with your friends on a $10 ticket, don’t buy snacks while there, then either skip the meal or just go there and order water and an appetizer (less than $10), and then if they go somewhere else afterwards, tag along if it’s free and don’t buy anything if it’s a store. There – suddenly your “night out” is less than $20.

It only becomes expensive if you indulge in every optional purchase available. If you buy concessions at the movies, that’s another $5-$10. If you buy a meal at a restaurant, that’s another $10-20 (at least). If you buy a bunch of books at the bookstore, that’s $10-infinity. Just skip all of that. Focus instead on your friends.

Q5: Edible homemade gifts

Just wanted to give a big shout out in favor of edible homemade gifts. These are almost always appreciated! If you can make a big batch of chocolate bark or a bunch of jars of preserves or something like that, I will always like them!
– Ted

I agree. There are few gifts I actually appreciate more than homemade edible gifts. If you make me chocolate bark or a jar of pickles or a big jar of sauerkraut, I will love you.

The best part about gifts like that is that they cost relatively little money for the person making them. If you have an inexpensive way to acquire the ingredients, then a homemade food item is very inexpensive.

In fact, I have friends who are motivated to garden simply to give the produce (mostly) away. They use it to make pickled green beans or homemade salsa or something like that.

Q6: Unused gift without receipt

My friend gave me a Keurig without a gift receipt and I do not want it. I can’t figure out where he bought it though. What can I do with it? I have zero interest in using it and it’s new in the box.
– David

If it’s not something that seems to be carried at a local retailer, your best bet is probably to turn to Craigslist or Facebook Marketplace and do it very quickly. Simply state what it is – a new Keurig in the box with the model number – and list it at a price a little below what it sells for online.

If you manage to do this before the holidays, you’ll probably get a bunch of offers very quickly and end up selling it for cash in hand to someone who’s trying to get a low-cost holiday gift for someone else.

You’re actually lucky to have received this gift a week or so before Christmas, because this enables you to flip it pretty quickly. The same advice holds true after Christmas, of course, but you may have to sell it a bit further below MSRP. Often, bargain hunters trawl Craigslist and Facebook Marketplace after the holidays.

Q7: Cheaper rent or shorter commute?

My current commute to work takes about an hour and a half each way. I have to drive to a train station and take a commuter train into the city and then take the subway to a stop that’s about a minute from work. I do it because the rent is way cheaper out here in the sticks.

I am considering moving in to the city or at least a lot closer because I lose three hours a day to commuting. However rents go up a lot when you start getting closer to the city and I am nowhere near financially ready to buy anything.

My estimation is that it will cost me about $800/month in extra costs to live closer. The rent will be a little more than $1,000/month more but it will save on wear and tear on the car and train costs. But I will cut about 2 hours per day out of the commute.

Is 2 hours per day of doing something besides commuting worth $1,000/month?
– Jim

It depends on how you use the commute and what you fill those extra two hours with.

Do you use your commute for things like meditation and journaling and reading challenging career-pushing books? If so, you’re getting some real value out of your commute. If you use it to play Clash Royale on your phone, then that time isn’t spent with a great deal of value.

Compare that to the value you’d get out of those extra ten hours a week. Would you spend it doing something really cool? Would you take care of things that you really need to tackle but just don’t have the time? Or would you binge watch Netflix?

If those two hours are a huge value upgrade for you, then it’s arguably worth it. However, if those two hours are only a value upgrade because you sit there in a daze during your commute, you might want to consider trying to make your commute time more valuable. Use it to read things that boost your career or your understanding of the world, or use it to meditate, or use it to write in a daily reflective journal.

Q8: Investing in best mutual funds?

So I was reading Money Magazine and they listed a bunch of the best mutual funds. I went to my retirement account and they offer none of them. How does one even invest in those things?
– Tommy

In your retirement account at work, you don’t invest in those things. Your retirement plan at work involves a select set of investment options chosen by whatever company runs the plan. Often, they choose options that are generally beneficial for the company, which is one of the big drawbacks of many workplace retirement plans.

So, how do you invest in these “best” funds then? One way is to open up your own Roth IRA account at a brokerage that deals in those funds. You could go to, say, Fidelity, which offers a lot of funds that often pop up on those lists.

You can also open up a normal taxable investment account at a place like Fidelity, where you can buy and sell those types of funds with no restrictions. The only catch is that there’s usually a fee associated with buying and selling (though some places offer a handful of free trades) and you have to pay all of the taxes out of pocket.

Q9: Wanting to downsize possessions

I took your advice and went for a couple of months without really buying anything except for food and household necessities. Now I feel like I own far more stuff than I ever should and I want to start getting rid of it and recouping at least some of the money. I live in an apartment so yard sales are out. Do I just Craigslist this stuff?
– Jenny

Craigslist and Facebook Marketplace are where I’d start for items that are either difficult to ship or that you have in large quantity with relatively minimal individual value, like a pile of old DVDs or old video games. Sell stuff in batches so that you’re not overwhelmed all at once with transactions.

If items have some decent individual value and are relatively easy to ship, you may want to consider putting them on eBay or Amazon Marketplace. You wouldn’t want to do this with every single bargain bin DVD you own (list those on Craigslist), but if you have box sets, this might be a good place for them.

If you ever find that you have difficulty selling an item, don’t be afraid to donate it to Goodwill.

This following question goes hand in hand with Jenny’s.

Q10: My Year of No Shopping

Did you see this article at the New York Times? My Year of No Shopping? Thoughts?
– Jane

I really like the premise of this article. If you make a conscious decision not to buy anything other than food and household essentials and other things that basically amount to needs, you quickly find yourself feeling as though you have an abundance of possessions and find that rather than wanting more, you’re almost overwhelmed by how much you have. This article really hammers home that point.

I think that if you consistently buy stuff, you constantly follow that buying with more wanting, and wanting with more buying, and buying with more wanting, and so on. By simply disrupting that cycle by saying “NO BUYING!” for a while, your wanting starts to disappear and in its place comes a real assessment of how much stuff you have.

It’s a good idea for everyone to sometimes take a long break from buying non-essential things and see how that break affects how you view your abundance of possessions.

Q11: Very old savings bonds

I recently found a bunch of savings bonds in my name that were issued in the late 1970s and early 1980s. Are these worth anything any more? What can I do with them?
– David

They do have value! You can use this calculator from the Treasury Department to see how much they’re worth. It’s likely that the bonds are worth at least their face value at this point, but are also likely to no longer be earning interest.

Many local banks will cash savings bonds for you, though not all of them. Check with the bank you already do business with and ask whether or not they offer savings bond cashing.

You will likely have to report these bonds on your taxes, so be sure to keep some of the money aside for taxes for now. Keep records on the bonds you sold and who bought them for you, and save about 20% of the cash you get out of the bonds for taxes. Though the rules on old savings bonds and taxes are a little arcane, a program like TurboTax will have no problem figuring it out for you.

Congratulations – you’ve come into a small windfall.

Q12: Goal oriented planner question

I loved your goal oriented planner roundup but I found myself struggling to find one that’s good for me. I am a stay at home mom who is trying to start a small crafting business and get in better shape. What one should I use?
– Mindy

If your primary focus is on parenting and the other elements are side goals, I’d probably suggest the Daily Greatness Parents Journal. It’s pretty much perfect for a stay-at-home parent or a homeschooling parent that’s focused primarily on child enriching activities and home economics, though it does provide space for other things.

If you feel like you have parenting largely under control and you just have those three big areas of focus for the year – parenting, the crafting business, and fitness – I’d probably point to the SELF Journal. It’s good if you’re seriously focusing on just a few goals and really want to think about and track your progress on them every single day.

Without knowing what your day to day routine is like, those are my best guesses. Good luck!

Got any questions? The best way to ask is to follow me on Facebook and ask questions directly there. I’ll attempt to answer them in a future mailbag (which, by way of full disclosure, may also get re-posted on other websites that pick up my blog). However, I do receive many, many questions per week, so I may not necessarily be able to answer yours.

The post Questions About Pensions, Edible Gifts, Commuting, No Shopping, and More! appeared first on The Simple Dollar.

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25 Affordable Cities That Are Also Awesome Places to Raise Families

There comes a time in everybody’s life when they need to start thinking more about diapers than dive bars.

Believe me, I’m getting there.

I don’t even have kids and I recently caught myself shaking my fist at a mild speeder in my quiet residential neighborhood. I may even have muttered “dag nabbit.”

And although I’m super happy with where I live right now (St. Petersburg, Florida, for the win!), I can’t help but wonder if there’s a better town out there for when my wife and I ultimately decide to start a family.

Here’s the thing: we’re both writers. That means regardless of where we would want to end up, it would have to be affordable.

Sure, Libertyville in Illinois has Blue Ribbon schools and crime is practically nonexistent, but the median cost of maintaining a mortgage or renting an apartment is more than $1,800. That goes for a lot of other family-friendly cities, towns and suburbs across the U.S.

We already brought you the best 25 cities that millennials can afford, so we did another deep-dive analysis to find the best cheap cities for new families. We began the analysis with counties so we could include suburbs and ensure we had the most recent, robust data as a starting point.

Here’s just a sample of the factors we considered:

• Median rent and mortgage costs

• Healthcare costs

• Household income

• Regional price parities

• Pollution and water violations

• Violent crime rate

• School grades

• Access to healthy food

• Civic associations per capita

• Museums and libraries per capita

To make sure the cities we explored within the counties wouldn’t be too small, we dropped any counties with less than the average population of around 100,000.

Even though we dropped less populous counties from our analysis, we kept cities and towns regardless of their sizes. We know some of you readers would prefer a small town where speeders aren’t terrorizing your neighborhoods.

Before we reveal the top 25 cities, here’s some of what we learned about family-friendly towns in the U.S:

• They are almost always historically relevant

• There are plenty of museums

• Parkland and trails are at a premium

• Farmer’s markets abound

• The city or other groups sponsor events almost every weekend

• Most have small but bustling downtowns

• High school football rules

• If you want cheap, you’ve gotta deal with snow

So, without further ado, here’s the list of the best cities that new families can actually afford.

1. Franklin, Tennessee

GOOD SCHOOLS
#7/25

FUN FOR THE FAM
#9/25

HEALTH MATTERS
#17/25

CHEAP-O-METER
#2/25

 

It was during the annual Dickens of a Christmas Festival in 2011, in which musicians, artisans, food hawkers and actors dressed as classic Dickens charcters flood the bucolic streets of the town of roughly 75,000.

She thought it was too good to be true.

“I said, ‘It feels like we’re in the movie “Funny Farm,”’” she explains, referencing the 1988 Chevy Chase film in which a couple moves to an idyllic town that turns out to be overrun with jerks.

That’s not the case in Franklin, where she moved with her family in 2012.

Now, Van Landingham’s son Jacob is the star quarterback at Page High School, and weekends revolve around the farmer’s market and walking her dog through nearby trails.

“We are full on drinking the Kool-Aid,” she says.

Downtown Franklin is the star of the town, Van Landingham says, with farm-to-table restaurants like Gray’s on Main (located in an old pharmacy). If you’re a fan of wine, get your fix at Arrington Vineyards, which was founded by Kix Brooks (one-half of country band Brooks & Dunn.)

2. Noblesville, Indiana

GOOD SCHOOLS
#6/25

FUN FOR THE FAM
#3/25

HEALTH MATTERS
#14/25

CHEAP-O-METER
#5/25

 

Elizabeth Schultz, a 13-year-old student at Noblesville Middle School in the bucolic small town north of Indiana, just landed a part in “Guys and Dolls.”

“She is so giddy,” says her mom Laura Schultz.

Have you ever heard of anything so idyllic?

Laura Schultz lived on the southern end of Indianapolis for her whole life before moving north to Noblesville in 2009.

With her daughter in tow, she and her husband Darrin Hugill moved to the town of nearly 52,000 for the schools, parks and proximity to work. She can walk to Dr. James A. Dillon Park or the local Kroger.

The Historic Noblesville Square is the highlight of the town, Schultz says, with events happening nearly every weekend.

The best part? The town is dang cheap.

“If I cross the street and go into Carmel, my taxes double,” Schultz says. “I cannot tell you how happy I am to have moved up here.”

3. Rochester, Minnesota

GOOD SCHOOLS
#21/25

FUN FOR THE FAM
#16/25

HEALTH MATTERS
#7/25

CHEAP-O-METER
#1/25

 

Pumpkin patches and apple orchards. Ice cream and soda pop breweries.

A cynic might sneer at how Rochester just oozes Americana. But at The Penny Hoarder, we’re not cynics.

“Rochester is kind of like a little-big town,” says Kristen Rogers, who moved to the city with her family in 2007. “The people here all know each other, but it’s a big town because there are so many opportunities for jobs.”

The Mayo Clinic, which is consistently ranked as one of the best hospitals in the country, employs more than 34,000 in Rochester. IBM also has a sizeable presence.

But for Rogers, who with her husband Karl has three young daughters, the charm comes from the neighborly connections.

“Anyone could plop in and find a network of friends and children with just a few clicks of a button (online),” she says.

Oh, and having a Hy-Vee grocery store in town is a perk.

A typical weekend for the family includes a trip to the aforementioned apple orchard or a stop at the Minnesota Children’s Museum. After finding a sitter, the parents head to the Rochester Civic Theater, where they can enjoy a show for less than $60.

And for the whole family, there’s LTS Brewing Company, where the parents can grab a pint and the kids can experiment with honey lemonade or cherry cream soda.

“I think Rochester is the best of both worlds,” Kristin Rogers says. “It has quiet, safe neighborhoods and an upbeat downtown feel where you can feel like you’re truly going out for a night on the town.”

4. Iowa City, Iowa

GOOD SCHOOLS
#15/25

FUN FOR THE FAM
#20/25

HEALTH MATTERS
#16/25

CHEAP-O-METER
#4/25

 

Sometimes a love of politics can lead you to a spectacular — and cheap — place to start a family.

That’s the case for many of Laci Lower’s friends or acquaintances, who found themselves drawn to the state during the riveting Iowa caucuses, only to discover the charm of cities in the Hawkeye State. They were particularly drawn to Iowa City.

There are also “boomerang residents,” like Lower.

“A lot of people will move away, but when it’s time, they come back and raise a family because they found it’s a place where their kids can thrive,” she says.

Regardless of how you find yourself in Iowa City, Lower points to Wingman as a great tool to immediately connect you with the community. You’ll find an Iowa City expert to give you the rundown on all sorts of venues and events — on a budget.

“Most things are very accessible without spending an exorbitant amount of money,” she says. “There’s more to do than you can possibly do — and a lot of it is free.”

Lower also mentioned apple orchards as a go-to family activity (sensing a trend?) And there are festivals downtown every other weekend in the summertime.

As in any historic town, be sure to take the kiddos to museums. Oh, and who would want to raise a family in a city without a baller farmer’s market?

5. Delaware, Ohio

GOOD SCHOOLS
#14/25

FUN FOR THE FAM
#6/25

HEALTH MATTERS
#9/25

CHEAP-O-METER
#8/25

 

Alan Brown, a 42-year-old adhesive engineer (hey, glue’s got to get sticky somehow), has lived in Delaware, Ohio, for about half his life — roughly 19 years.

The low tax rate is what drew him to the area, as it was more affordable than, say, Columbus. But now, with its burgeoning downtown and swelling population, residents have taken to calling it a mini-Columbus.

“It’s just such a vibrant town,” Brown says.

He always noticed when teachers would ask how his now-graduated sons Tyler and Jacob were doing, which gave the growing city a small-town feel.

“My kids always got the support they needed within the school district,” Brown says.

As for the availability of extracurricular activities, his 8-year-old daughter, Abigail, is taking dance classes at the Arts Castle (more formally know as the Delaware County Cultural Arts Center). The quirky fortress-like building offers dozens of classes and exhibits.

First Fridays on Main Street are one of Brown’s favorite free activities in Delaware, as is the weekly farmers market.

“It’s definitely a growing city with a small-town feel,” Brown says.

6. Madison, Wisconsin

GOOD SCHOOLS
#13/25

FUN FOR THE FAM
#19/25

HEALTH MATTERS
#12/25

CHEAP-O-METER
#6/25

 

Olbrich Botanical Gardens will keep the kids busy — and learning cool stuff about plants in a year-round tropical paradise. Yes, even when the temperatures dip below freezing in January. And it’s only two bucks!

The Madison Children’s Museum has plenty of programs and events for rainy days. And if the weather is nice, the Cave of the Mounds will wow the family with geologic wonder. It rocks. (Sorry, I had to do it.)

7. Overland Park, Kansas

GOOD SCHOOLS
#8/25

FUN FOR THE FAM
#12/25

HEALTH MATTERS
#8/25

CHEAP-O-METER
#14/25

 

If you have little daredevils in your midst, Overland Park has got just the thing for your family: indoor skydiving for children 3 and up. iFLY has all the thrill of skydiving without the, you know, jumping-out-of-airplanes part.

For the more sophisticated toddlers, there’s the Museum at Prairiefire, which boasts a partnership with the American Museum of Natural History to bring you exhibits from the renowned New York City landmark.

8. Burlington, Vermont

GOOD SCHOOLS
#12/25

FUN FOR THE FAM
#21/25

HEALTH MATTERS
#3/25

CHEAP-O-METER
#10/25

 

Downtown Burlington centers around an open-air mall and more than 100 shops and restaurants. And what’s an idyllic downtown without a farmer’s market — especially one that stays open indoors during the dregs of winter.

Keep the family active with the Burlington Greenway (there’s a reason this town scored so high on the Health Matters scale) or let your little ones shred the calories away at A_Dog Skatepark. In fact, there are plenty of parks and beaches to check out.

Yes. Burlington has beaches.

9. Leesburg, Virginia

GOOD SCHOOLS
#4/25

FUN FOR THE FAM
#1/25

HEALTH MATTERS
#11/25

CHEAP-O-METER
#23/25

 

It’s no wonder the No. 1 family-friendly city on the list is outside Washington, D.C., as that metro area has been on a major growth spurt since the Great Recession. It seems like most people want to live around D.C.

But with its historic downtown and quaint art and antique shops, Leesburg is a far cry from a bustling city. The 1,000-acre Morven Park provides entertainment for any weekend with the family, with three museums, athletic fields and an equestrian center. (Be careful, your daughter or son may want to buy a horse after watching one of these shows.)

10. Bentonville, Arkansas

GOOD SCHOOLS
#24/25

FUN FOR THE FAM
#5/25

HEALTH MATTERS
#25/25

CHEAP-O-METER
#3/25

 

It turns out the city housing the headquarters of Walmart is actually a pretty awesome — and especially cheap — place to raise a family.

There’s the amazing Amazeum, which has exhibits and events for your kids to dive into.  Downtown Bentonville has a farmer’s market perfect to pick out ingredients for a weekend meal. The Crystal Bridges Museum of American Art will add some further elegance to a Saturday afternoon, or whip out the mountain bike on the Slaughter Pen Hollow Trail.

And, I mean, you kind of have to make a few trips to the Walmart Museum (and stop buying from Amazon. You’re in a Walmart town now, partner.)

11. Arlington, Virginia

GOOD SCHOOLS
#1/25

FUN FOR THE FAM
#4/25

HEALTH MATTERS
#18/25

CHEAP-O-METER
#25/25

 

Though it’s definitely not the cheapest place on the list to raise a family, Arlington certainly lures lots of young families anyway with its incredible schools. It’s also another city adjacent to Washington, D.C., so you can always hop over to the capital for a weekend jaunt.

But in Arlington itself, there’s also the charm of what city officials call “urban villages,” which combine the feel of a quaint downtown with a bustling urban atmosphere. The Arlington Arts Center will get those youngsters passionate about creativity, or get out and active with a ride, run or walk along the Mount Vernon Trail.

12. Stillwater, Minnesota

GOOD SCHOOLS
#16/25

FUN FOR THE FAM
#13/25

HEALTH MATTERS
#5/25

CHEAP-O-METER
#13/25

 

As a younger guy, I was annoyed from time-to-time at the exponential increase in the number of families at my local brewery. Now that I’m older, I totally get the appeal.

Stillwater has got your young family covered on breweries. There’s Maple Island Brewing and St. Croix Brewing Company in the historic downtown and Lift Bridge Brewing Company further west.

And your kids will love Teddy Bear Park. Aw.

13. Raleigh, North Carolina

GOOD SCHOOLS
#11/25

FUN FOR THE FAM
#10/25

HEALTH MATTERS
#23/25

CHEAP-O-METER
#16/25

 

One day in the 66-acre Pullen Park, and you might want to grab the family and up and move to Raleigh. The carousel, boat house and train could take up an entire Saturday with the family.

The North Carolina Museum of Art has inspiring exhibits, as well as an outdoor amphitheatre with tons of events. Or head over to North Carolina State University to check out the JC Raulston Arboretum, a 10-acre garden and event space. And you can always count on the Marbles Kids Museum to wear the little ones out.

14. Papillion, Nebraska

GOOD SCHOOLS
#25/25

FUN FOR THE FAM
#8/25

HEALTH MATTERS
#15/25

CHEAP-O-METER
#7/25

 

The great outdoors is a huge draw for Papillion. The Prairie Queen Recreation Area offers activities for the whole family, from boating and fishing on the lake to hiking or biking along a four-mile paved trail.

However, if you choose not to answer the call of the wild, you can catch a foul ball at Werner Park or catch a free movie or concert at Sumtur Amphitheater. If all else fails, take the family to Papio Fun Park where you can enjoy go-karting, mini golfing or laser tagging on a budget using coupons or even Groupon.

15. Fairfax, Virginia

GOOD SCHOOLS
#2/25

FUN FOR THE FAM
#2/25

HEALTH MATTERS
#10/25

CHEAP-O-METER
#24/25

 

If history is your thing, Fairfax has tons of places for you to soak up some facts. George Washington’s Mount Vernon and the Smithsonian National Air and Space Museum have tons of interactive displays for both kids and adults alike.

If you aren’t interested in a history lesson, you should go to Frying Pan Farm Park. While you may not find frying pans planted in the ground, you will be greeted with rural community life and Belgian draft horses.

16. Boulder, Colorado

GOOD SCHOOLS
#3/25

FUN FOR THE FAM
#22/25

HEALTH MATTERS
#6/25

CHEAP-O-METER
#20/25

 

While Boulder is known for its proximity to the Rocky Mountains, hiking might not be the best choice for every family.

Downtown you can find Pearl Street Mall, with access to play areas and street performers, or you can head out to the Into the Wind kite and toy store for a unique shopping experience.

17. Hastings, Minnesota

GOOD SCHOOLS
#23/25

FUN FOR THE FAM
#7/25

HEALTH MATTERS
#2/25

CHEAP-O-METER
#11/25

 

Hastings is home to a host of natural parks including Afton State Park, Vermillion Falls and the Carpenter St. Croix Valley Nature Center.

Other activities include picking apples at the Afton Apple Orchard, skiing in the Afton Alps or strolling through Hastings Co-op Creamery.

18. Carrboro, North Carolina

GOOD SCHOOLS
#5/25

FUN FOR THE FAM
#24/25

HEALTH MATTERS
#24/25

CHEAP-O-METER
#15/25

 

Carrboro is located in the center of North Carolina and is home to many small mill towns. If you enjoy walking around and eating, the Farmer’s Market is the first place you should visit. It offers fresh, locally grown and produced goods year round.

The Weaver Street Market is also worth a visit. It offers produce, events for kids and adults and even music various days of the week.

19. Grand Haven, Michigan

GOOD SCHOOLS
#22/25

FUN FOR THE FAM
#18/25

HEALTH MATTERS
#19/25

CHEAP-O-METER
#9/25

 

Grand Haven is a great place to bring kids. With a variety of terrain you can’t get bored. You can ski at Mulligan’s Hollow in the winter or visit the beach and the Grand Haven Lighthouse during the warmer months.

If you are looking for competition, you should check out Chinook Pier Mini Golf. It is very inexpensive and can last for a whole day of play.

20. Castle Rock, Colorado

GOOD SCHOOLS
#20/25

FUN FOR THE FAM
#11/25

HEALTH MATTERS
#1/25

CHEAP-O-METER
#19/25

 

Castle Rock is named for its castle tower-shaped butte, or hill with long vertical sloping sides, near the center of town. While your kids undoubtedly be making tons of “butt” jokes about the name of this area, there are plenty of other fun activities for the whole family.

One of the most loved places to visit is Matney Park. There the kids can run around on the playground, play basketball, horseshoes and even disc golf on a synthetic turf field.

21. Ann Arbor, Michigan

GOOD SCHOOLS
#9/25

FUN FOR THE FAM
#25/25

HEALTH MATTERS
#4/25

CHEAP-O-METER
#21/25

 

Ann Arbor is home to a handful of museums and science-focused attractions. If your kids have a habit of touching anything in sight, one place to check out is the Ann Arbor Hands-On Museum, where kids can literally play with the exhibits.

If science isn’t your forte, there are plenty of other topics to explore at the University of Michigan Museum of Natural History, University of Michigan Kelsey Museum of Archaeology and the University of Michigan Stearns Collection of Musical Instruments. You may not be able to touch the exhibits here, but they’re sure to be a treat for the whole family.

22. Charlottesville, Virginia

GOOD SCHOOLS
#10/25

FUN FOR THE FAM
#17/25

HEALTH MATTERS
#21/25

CHEAP-O-METER
#22/25

 

Charlottesville has a ton of different attractions great for adults and kids alike. If you are looking for a relaxing day in town, the Downtown Walking Mall is a great place to spend the afternoon.

If you are looking for something a little more adventurous, Carter Mountain Orchard is the place to go. In the fall, it offers pumpkin patches, hayrides and apple picking.

23. Portland, Maine

GOOD SCHOOLS
#19/25

FUN FOR THE FAM
#23/25

HEALTH MATTERS
#20/25

CHEAP-O-METER
#12/25

 

Portland is known for its coastal beauty, so make sure to take tours of the various lighthouses and parks. If you have a quirky family, a trip to the Umbrella Cover Museum or Treehouse Toys may be a better use of your time.

24. Minneapolis, Minnesota

GOOD SCHOOLS
#18/25

FUN FOR THE FAM
#14/25

HEALTH MATTERS
#22/25

CHEAP-O-METER
#1/25

 

Minneapolis has tons of historic museums and art galleries such as the Minneapolis Institute of Art and the Walker Art Center. If you and your family are feeling athletic, though, there are options available such as the Depot, an indoor skating rink, and Minnehaha Regional Park to see Minnesota’s oldest park.

Worst case scenario, you can drive 20 minutes to the Mall of America.

25. West Bend, Wisconsin

GOOD SCHOOLS
#17/25

FUN FOR THE FAM
#15/25

HEALTH MATTERS
#13/25

CHEAP-O-METER
#15/25

 

Following the trend of several other cities on the list, West Bend has the awesome Shalom Wildlife zoo, as well as trails for plenty of hiking opportunities with the family (if you trek long enough, it’ll be real easy to put the kids to bed).

The West Bend Labyrinth Garden within Regner Park is perfect for Sunday strolls.

Alex Mahadevan is a data journalist at The Penny Hoarder. When he’s not shaking his fist at speeding scofflaws, he enjoys bike rides with his wife, with whom he is looking forward to starting a family someday.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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